AGC to Expand Synthetic Pharmaceutical Production Base in Spain

TOKYO,April 8,2022 --AGC Inc. (hereinafter "AGC"),a Tokyo-based world-leading manufacturer ofglass,chemicals,high-tech materials,has decided to expand the facilities ofAGC Pharma Chemicals Europe S.L.U. (hereinafter "APCE"),an AGC subsidiary inSpain engaged in the synthetic pharmaceutical (*1) CDMO (*2) business. A newbuilding with a total floor area of 7,500 m2 will be constructed on thecompany's site,increasing the current production capacity by 30%. The newfacility is scheduled to start operation in the first half of 2024,with anestimated total investment of approximately 100 million US dollars.

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Photo: Site scheduled for expansion (yellow-boxed area)

https://kyodonewsprwire.jp/img/202204069676-O2-1q1wYYTZ

Reference:

AGC Group's CDMO business locations

https://kyodonewsprwire.jp/prwfile/release/M000303/202204069676/_prw_PI3fl_7TTl7l2b.jpg

Based on its long history and extensive track record,APCE has incorporatedAGC's long-accumulated chemical synthesis technologies,including knowledge ofhandling fluorine,and the company's number of contracts is growing faster thanthe synthetic pharmaceutical CDMO market,which is growing over 7% or moreannually. To meet this strong demand,AGC has decided to further expand thecapacity of this site,in addition to the 30% facility expansion (https://www.agc.com/en/news/detail/1200616_2814.html) announced in April 2020.

This expansion will include the introduction of facilities for highly potentactive pharmaceutical ingredients (HPAPI) (*3),such as cancer therapy drugs,for which demand has been increasing in recent years. Furthermore,AGC willconsider additional capacity expansion in the near future since the newlyconstructed building has additional room for further expansion.

Under its medium-term management plan "AGC plus-2023," the AGC Group haspositioned its life science business,including its syntheticagrochemical/pharmaceutical and biopharmaceutical CDMO services,as one of itsstrategic businesses. The Group aims to expand its sales of the life sciencebusiness from 44.9 billion yen in 2018 to 135 billion yen in 2022 and 200billion yen or more in 2025. This investment follows AGC Wakasa Chemical'sfacility expansion in November 2021 (https://www.agc.com/en/news/detail/1202588_2814.html ),and the company willcontinue to make aggressive acquisitions and capital investments in both itssynthetic agrochemical/pharmaceutical and biopharmaceutical CDMO business. TheAGC Group will work to provide its customers in each region with globallyunified high-quality services,contributing to the well-being of patients andthe wider society as a whole.

Notes

(*1) Synthetic pharmaceuticals: Pharmaceuticals manufactured through chemicalsynthesis,small-molecule pharmaceuticals.

(*2) CDMO: Contract Development & Manufacturing Organization. A company whichis contracted on behalf of another company to provide product manufacturingservices as well as the development of manufacturing processes.

(*3) Can handle up to OEB4 (1-10 microgram/m3)

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